China remains the largest foreign market for US tech giant Apple. Chinese authorities are well aware of this leverage and have astutely used this dependency to their advantage. The loss of such a significant market would spell trouble for any manufacturer, and Apple is no exception. However, such tactics could easily make China vulnerable, especially when other countries, like India, offer an appealing alternative. Analysts at JPMorgan have factored in these political maneuvers into their equity forecasts. They believe that Apple stocks might not see an upswing in the second half of this year due to overly high valuation and escalating risks coming from China. This could potentially offset the success garnered from the recent iPhone 15 launch. Consequently, the investment bank's experts have lowered their target price for the company's stock from $235 to $230. They cited the restriction imposed by China on its government officials who were banned from using iPhones in their workplace. Analysts explain that this ban might come as a measure to beat Apple in a tough competition that is heating up in Apple's largest overseas market. However, early sales figures from the iPhone's recent unveiling indicate that even a broader ban on iPhone usage by state-company employees may barely dent Apple's leading role in the market, given consumer preferences in the region.
